Some budget calculation app, third party UPI app or mobile wallet sends a notification when the user’s bank balance is low at the end of the month. In this, they are offered small and easy loans to overcome the shortage of cash born at the end of the month. These short term loans are called microloans or payday loans. The duration of such a loan is generally 1 to 3 months. Let us know how Payday loan works, what its benefits are, what are its interest rates and charges, and who can take it. This loan is famous as payday loans online 5 minute approval.
How Payday Loans Work
Most Payday loan providers run their business through mobile apps. The process of taking such loans through them is very easy. Under this, one has to fill the form by downloading the app, registering him. Personal, professional and bank details have to be entered in the form. After this the necessary documents have to be uploaded, the loan agreement is to be authenticated through OTP. The payday loans online in 5 minute approval are granted from the bank.
If the loan application is completely clear, then the money can be credited to your bank account in less than an hour. If there is any flaw in the application, then the company calls the applicant and verifies some things. After this money is credited.
Benefits of payday loan
- Easy application
- Soon, paperless and without being introduced to your company / financial institution, the loan is approved and credited to its bank account.
- Loans ranging from a nominal amount like $ 1500 to $ 10000 can be taken on the basis of monthly income, repair capacity, and terms and conditions.
- Like a personal loan, this loan can also be used for any purpose. Such as filling of credit card bill, filling school fees, use in a medical emergency, used for marriage or travel, buying Smartphone/laptop, etc.
- Short loan period
- Credit Line Option: Some lenders offer flexible credit lines instead of term loans. In this, a certain loan amount is awarded and it is convenient that when you need and as much as you need, you can withdraw from it. You can close the credit line at any time.
- No prepayment/part payment/closure fees if the loan amount has been repaid before the completion of the loan period.
- Customer support found only on a chat or phone call.
- These loan also known as payday loans online 5 minute approval.
Things to keep in mind before applying
- Before taking a payday loan, check the late payment fees. Some companies claim that they do not take any charge, then some charge up to 4 percent per day interest rate for late payment.
- Before giving personal details to the payday loan provider and taking the money, check whether the company is genuine and trustworthy.
- Some companies charge processing fees on this loan, it can be up to 2 percent of the loan amount.
- Most of the companies offering payday/microloans keep the interest rate suited to your credit profile and needs.